Rupee hits all-time low at 92.18 as oil prices surge

The Indian rupee plunged to an all-time low of 92.18 against the US dollar in early trade on Wednesday, as rising crude oil prices and escalating US–Iran tensions rattled investor confidence.

Forex traders said the domestic currency came under heavy pressure after Brent crude crossed USD 82 per barrel in futures trade, driven by geopolitical worries. Higher oil prices raised concerns over India’s import bill and broader economic stability.

At the interbank foreign exchange market, the rupee opened at 92.05 and fell quickly to 92.18, a drop of 69 paise from Monday’s close of 91.49. The market had remained closed on Tuesday for Holi.

Investors are moving toward safe-haven assets as foreign capital continues to exit Indian equities. Concerns over expensive imports potentially widening the trade deficit further added to the rupee’s decline.

The dollar index, tracking the US currency against six major peers, was up slightly at 99.08, reflecting strong global demand for the greenback.

Brent crude futures rose 1.01 per cent to USD 82.22 per barrel amid the US–Iran crisis. Analysts said India, which imports nearly 85 per cent of its fuel requirements, could face a sharp rise in its import costs, fueling inflationary pressures.

Domestic equities mirrored the negative sentiment. The BSE Sensex dropped 1,671.39 points, or 2.08 per cent, to 78,567.46, while the Nifty 50 fell 502.35 points, or 2.02 per cent, to 24,363.35. On Monday, foreign institutional investors sold equities worth Rs 3,295.64 crore, adding to market pressure.

Traders are closely watching crude prices and geopolitical developments, as these factors are likely to influence the rupee and equity markets in the coming days. The combined impact of rising oil prices, capital outflows, and safe-haven demand has pushed the rupee to an all-time low, highlighting vulnerabilities amid global uncertainty.